Abu Dhabi sets $12bn for water, power projects

Abu Dhabi, November 11, 2009

Oil exporter Abu Dhabi is set to spend about Dh44 billion ($11.98 billion) on water and electricity projects over the next five years, a newspaper reported on Tuesday.

Six firms have applied to operate in water desalination, recycling sewage water, renewable energy and electricity in the emirate, 'Alrroya Aleqtissadiya' reported citing Nicholas Carter, director general of Abu Dhabi Water and Electricity Authority (ADWEA) Regulation & Supervision Bureau.

Carter did not identify the firms, but major international utilities companies traditionally vie for contracts in the oil exporting region where governments had been expanding power generation and water desalination capacities rapidly to cater for growing economies and populations.

Water and electricity demand in Abu Dhabi, one of seven members of the United Arab Emirates federation, is expected to rise 7 to 8 percent over the next five years, a senior ADEWA official said on Tuesday, adding that the body will look to dual fuel, gas or coal to generate its power.

'The growth of power demand in the UAE between 2008 and 2009 (was) 11 percent,' Abdulla Said al Nuaimi, director of privatisation at ADWEA, told a conference.

'This shows a sign in the economy's growth and when the economy grows, we grow. Over the next five years, we expect the power and water sector to increase by 7-8 percent,' he noted.

ADWEA was looking for sources of fuel to meet that demand and could consider dual fuel, gas or coal, even though the latter would present logistical difficulties, Nuaimi added.-Reuters